Changes

9.  Provide, in your own words, the best definition of "public good" that you can.

9.  Provide, in your own words, the best definition of "public good" that you can.

::A public good is a good which is either available to everyone in an area or available to no one, like music during a loud rock concert outside.

:A public good is a good which is either available to everyone in an area or available to no one, like music during a loud rock concert outside.

10.  Identify a concept in economics that you found difficult to understand at first, but then explain how you were able to eventually understand it.

10.  Identify a concept in economics that you found difficult to understand at first, but then explain how you were able to eventually understand it.

:::<math>\frac{-Q}{P}X\frac{P}{Q}</math>

:::<math>\frac{-Q}{P}X\frac{P}{Q}</math>

:::and thus P_ed= -1.  By convention, because price elasticity of demand for one good is always negative, the negative sign is dropped and we have our answer:  price elasticity is 1.  (Price cross-elasticity of demand may be positive or negative, depending on whether the two goods are substitutes or complements.)

::and thus P_ed= -1.  By convention, because price elasticity of demand for one good is always negative, the negative sign is dropped and we have our answer:  price elasticity is 1.  (Price cross-elasticity of demand may be positive or negative, depending on whether the two goods are substitutes or complements.)

[[Category:Economics lectures]]

[[Category:Economics lectures]]